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Book Review: Good to Great : Why some companies make the leap and others don't
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Level 5Leadership
First Who…Then What
Confront theBrutal Facts
HedgehogConcept
Culture ofDiscipline
TechnologyAccelerators
Disciplined People Disciplined Thought Disciplined Action
BuildupBreakthrough
Good to Great
Level 5Leadership
First Who…Then What
Confront theBrutal Facts
HedgehogConcept
Culture ofDiscipline
TechnologyAccelerators
Disciplined People Disciplined Thought Disciplined Action
BuildupBreakthrough
Level 5Leadership
Good to Great
Level 5 Leadership
Level 5 Executive Leader
Effective Leader
Competent Manager
Contributing Team Member
Highly Capable Individual
LEVEL 4
LEVEL 5
LEVEL 3
LEVEL 2
LEVEL 1
Characteristics of Level 5 Leadership
Personal Humility + Professional WillSet up successors for even greater successCompelling modesty, self-effacing, understatedFanatically driven to produce sustainable resultsMore plow horse than show horseAttribute success to other than themselves Look in mirror and take full responsibility for poor
decisions
Personal Humility + Professional WillSet up successors for even greater successCompelling modesty, self-effacing, understatedFanatically driven to produce sustainable resultsMore plow horse than show horseAttribute success to other than themselves Look in mirror and take full responsibility for poor
decisions
Level 5Leadership
First Who…Then What
Confront theBrutal Facts
HedgehogConcept
Culture ofDiscipline
TechnologyAccelerators
Disciplined People Disciplined Thought Disciplined Action
BuildupBreakthrough
First Who…Then What
Good to Great
First Who . . . Then What
Leaders began the transformation by first getting the right people on the bus (and the wrong people off the bus).
Then figure out “What” is the destination
Leaders began the transformation by first getting the right people on the bus (and the wrong people off the bus).
Then figure out “What” is the destination
Why do it this way?• Begin with “who” instead of “what, can more easily adapt to a
changing world• If you have the right people on the bus, problem of motivation
and people managing are diminished• If you have the wrong people, doesn’t matter whether you have
the right direction because company will still not be great
First Who . . . Then What (Cont.)
Leaders are rigorous, not ruthless in people decisions. Three practical disciplines for being rigorous:
1) When in doubt, don’t hire2) When you know you need to make a people decision,
act quickly3) Put your best people on your best opportunities, not
biggest problems
Leaders are rigorous, not ruthless in people decisions. Three practical disciplines for being rigorous:
1) When in doubt, don’t hire2) When you know you need to make a people decision,
act quickly3) Put your best people on your best opportunities, not
biggest problems
David Maxwell (CEO, Fannie Mae) made it absolutely clear that there would only be seats for A players who were willing to put forth an A+ effort, and if you weren’t up for it, you had better get off the bus, and get off now.
Example:
Level 5Leadership
First Who…Then What
Confront theBrutal Facts
HedgehogConcept
Culture ofDiscipline
TechnologyAccelerators
Disciplined People Disciplined Thought Disciplined Action
BuildupBreakthrough
Confront theBrutal Facts
Good to Great
Confront the Brutal Facts
Must create a culture wherein people have a tremendous opportunity to be heard and, ultimately, for the truth to be heard.
Must create a culture wherein people have a tremendous opportunity to be heard and, ultimately, for the truth to be heard.
Setting off on the path to greatness requires confronting the brutal facts of current reality.
Setting off on the path to greatness requires confronting the brutal facts of current reality.
Confront the Brutal Facts
Lead with questions, not answers
Engage in dialogue and debate, not coercion
Conduct autopsies, without blame
Build red flag mechanisms where information cannot be ignored
Lead with questions, not answers
Engage in dialogue and debate, not coercion
Conduct autopsies, without blame
Build red flag mechanisms where information cannot be ignored
Four basic practices:Four basic practices:
Confront the Brutal Facts
Stockdale Paradox:Retain absolute faith that you can and will prevail in the end, regardless of the difficultiesAND at the same time confront the most brutal facts of your current reality, whatever they might be.
Stockdale Paradox:Retain absolute faith that you can and will prevail in the end, regardless of the difficultiesAND at the same time confront the most brutal facts of your current reality, whatever they might be.
Level 5Leadership
First Who…Then What
Confront theBrutal Facts
HedgehogConcept
Culture ofDiscipline
TechnologyAccelerators
Disciplined People Disciplined Thought Disciplined Action
BuildupBreakthrough
HedgehogConcept
Good to Great
Hedgehog Concept
Hedgehogs simplify a complex world into a single organizing idea, a basic principle or concept that unifies and guides everything.
Hedgehogs see what is essential, and ignore the rest.
Hedgehogs simplify a complex world into a single organizing idea, a basic principle or concept that unifies and guides everything.
Hedgehogs see what is essential, and ignore the rest.
Hedgehog Concept
What you are deeplypassionate about
What you can be the best in
the world at
What drives your
economicengine
Simplicitywithinthe three circles
Hedgehog Concept
Getting the Hedgehog Concept takes an average of four years.
Getting the Hedgehog Concept takes an average of four years.
The right peopleEngaged in vigorous
dialogue and debate Infused with the
brutal factsGuided by questions
formed by the three circles
The right peopleEngaged in vigorous
dialogue and debate Infused with the
brutal factsGuided by questions
formed by the three circles
It is an iterative process by The Council: It is an iterative process by The Council:
Hedgehog Concept
TheCouncil
All Guided by the Three Circles
Ask Questions
Dialogue &Debate
Autopsies& Analysis
ExecutiveDecisions
An IterativeProcess
Level 5Leadership
First Who…Then What
Confront theBrutal Facts
HedgehogConcept
Culture ofDiscipline
TechnologyAccelerators
Disciplined People Disciplined Thought Disciplined Action
BuildupBreakthrough
Culture ofDiscipline
Good to Great
Culture of Discipline
Getting disciplined people who engage in disciplined thought and who then take disciplined action, fanatically consistent with three circles
Not about a tyrant who disciplines Involves a duality. Requires people who adhere to a
consistent system. Gives people freedom and
responsibility within framework of that system.
Getting disciplined people who engage in disciplined thought and who then take disciplined action, fanatically consistent with three circles
Not about a tyrant who disciplines Involves a duality. Requires people who adhere to a
consistent system. Gives people freedom and
responsibility within framework of that system.
Culture of Discipline (Cont.)
Budgeting is to decide which arenas fit Hedgehog Concept and should be fully funded and which should not be funded at all.
Budgeting is to decide which arenas fit Hedgehog Concept and should be fully funded and which should not be funded at all.
“Stop doing” lists are more important than “to do” lists.
“Anything that does not fit with our Hedgehog Concept, we will not do.”
“Stop doing” lists are more important than “to do” lists.
“Anything that does not fit with our Hedgehog Concept, we will not do.”
Includes willingness to shun opportunities that fall outside the three circles.
Includes willingness to shun opportunities that fall outside the three circles.
Level 5Leadership
First Who…Then What
Confront theBrutal Facts
HedgehogConcept
Culture ofDiscipline
TechnologyAccelerators
Disciplined People Disciplined Thought Disciplined Action
BuildupBreakthrough
TechnologyAccelerators
Good to Great
Technology Accelerators
Yet they often become pioneers in the application of carefully selected technologies.
Yet they often become pioneers in the application of carefully selected technologies.
Does it fit directly with your Hedgehog Concept?
Good-to-greats used technology as an accelerator of momentum, not a creator of it.
Does it fit directly with your Hedgehog Concept?
Good-to-greats used technology as an accelerator of momentum, not a creator of it.
Good-to-greats avoid technology fads and bandwagons.
Good-to-greats avoid technology fads and bandwagons.
Technology Accelerators
Technology by itself is never a root cause of either greatness or decline.
Technology by itself is never a root cause of either greatness or decline.
“Crawl, walk, run” can be a very effective approach, even during times of rapid and radical technological change.
“Crawl, walk, run” can be a very effective approach, even during times of rapid and radical technological change.
Level 5Leadership
First Who…Then What
Confront theBrutal Facts
HedgehogConcept
Culture ofDiscipline
TechnologyAccelerations
Disciplined People Disciplined Thought Disciplined Action
BuildupBreakthrough
Flywheel
Good to Great
The Flywheel
Good-to-great transformations never happened in one fell swoop.
Good-to-great transformations never happened in one fell swoop.
There was no single defining action, no grand program, no one killer innovation, no solitary lucky break, no miracle moment.
Instead they followed a predictable pattern of buildup and breakthrough.
Like pushing on a giant, heavy flywheel, it takes a lot of effort to get the thing moving at all, but . . . With persistent pushing . . . In a consistent direction . . . Over a long period of time . . .
There was no single defining action, no grand program, no one killer innovation, no solitary lucky break, no miracle moment.
Instead they followed a predictable pattern of buildup and breakthrough.
Like pushing on a giant, heavy flywheel, it takes a lot of effort to get the thing moving at all, but . . . With persistent pushing . . . In a consistent direction . . . Over a long period of time . . .
Two Popular Doom Loops to be Avoided
1) Misguided use of acquisitions—making deals for the sake of making deals.• “When the going gets tough, we go
shopping!”• G2G companies did acquisitions after the
Hedgehog Concept and after the flywheel had significant momentum.
• Acquisitions are accelerators not creators of flywheel momentum.
2) Leaders who stop the flywheel—leaders who step in, stop an already spinning flywheel, and throw the organization in entirely different direction.
For feedback: jayu8102rana@gmail.com
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